Item 14 - Pre -Commitment of Affordable Housing Funds for Illumination Foundation

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Page 15 • The rent standards for the Project must comply with the strictest of the standards imposed by the funding sources contributed to the Project, as applicable. The H HAP rent standards are set forth as follows: o The maximum affordable rent for the eight (8) TAY units will be set at the 30% AMI rent limit as published by the California Department of Housing and Community Development ("HCD") for the Multifamily Tax Subsidy Programs ("MTSP"); and o For the three -bedroom shared housing units, the total rent payments must not exceed the 50% MTSP AMI rent limit for a three -bedroom unit. Additionally, each tenant's rent must not exceed the lesser of: ■ One-third (1/3) of the 50% MTSP AMI rent for a three -bedroom unit; or ■ Thirty percent (30%) of the household's actual income (inclusive of Supplemental Security Income /State Supplementary Payment payments. • Illumination Foundation will provide/pay for case management / social service expenses outside of the Project's operating budget. • Illumination Foundation will cover any operating losses during the City's 55-year affordability period. • Given that Illumination Foundation is proposing to provide a loan to the Project from one of its affiliated entities, Illumination Foundation will incorporate a standstill provision that prohibits Illumination Foundation from foreclosing on the Project • All provided funding and Project requirements shall conform to the City's most recently adopted Affordable Housing Funds Policies and Procedures, unless alternative requirements are expressly provided in the executed Grant Agreement for the City Assistance or any other documents related to the development of the Project. • Approval of all required entitlements and discretionary actions to allow the adaptive reuse and construction (as applicable) of an eleven (11) unit affordable housing complex, with ten (10) units restricted for homeless households, to be located at 918 N. Bewley Street, Santa Ana, CA 92703 (APN 198-231-10). • The City's obligation to provide the City Assistance is and shall remain subject to all covenants, conditions, and restrictions set forth in the Grant Agreement, and in particular the City's analysis of the available funding sources and development and operating costs of the Project and the overall economic feasibility of the Project.